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News - 28 April 2011

Employment Tribunals or Mediation?

The Forum of Private Business is calling on the Government to protect them against vexatious claims made by employees who seek to exploit the Employment Laws. The Forum (based on information from its own Employment panel and the 2008/09 Employment Tribunal statistics) estimates there are approximately 1,900,000 workplace disputes in the UK every year.

The Forum argues that greater use of Mediation Services would benefit employers and the public purse. In conjunction with this, The Chartered Institute of Personnel and Development (CIPD) claim that dispute resolution costs the economy £24 billion per year, or £12,000 per case.

In another survey, the Law firm Eversheds, say that plans to introduce penalties for employers found to have breached employment rights would compel six in ten organisations to settle cases brought against them, rather than proceed to a hearing.

Another significant issue is the belief that tribunals are biased against employers because the burden of proof is on them to prove compliance with employment law. In the light of the Chancellor’s promise of greater scrutiny of the use of ‘no win, no fee’ lawyers, some business owners pointed out that using these lawyers encourages employees to take what they believe is ‘revenge’ on their former employer.

What other options are there?

The benefits of Mediation as opposed to Tribunals, according to the conclusion drawn from respondents to the survey, conclude that a third party (mediator) can help deal effectively with internal communication problems, and generally that it achieves conflict resolution rather than producing a winner and loser, which has been a criticism of the tribunal system.

For more information about Mediation Services contact Lavinia Newman, NOW to discuss how ABDS can help in all your business planning.

ABDS of Southampton, for all of your Financial and Business Development requirements.

Tel: 023 8083 6900  E-mail: abds.marketing@netaccountants.net

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